BDMD (Baird Medical Investment Holdings) Graham Number : $2.97 (As of Jun. 2024)

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What is Baird Medical Investment Holdings Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2025-04-17), the stock price of Baird Medical Investment Holdings is $5.25. Baird Medical Investment Holdings's graham number for the quarter that ended in Jun. 2024 was $2.97. Therefore, Baird Medical Investment Holdings's Price to Graham Number ratio for today is 1.77.

The historical rank and industry rank for Baird Medical Investment Holdings's Graham Number or its related term are showing as below:

BDMD' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0 Med: 0 Max: 1.93
Current: 1.77

During the past 3 years, the highest Price to Graham Number ratio of Baird Medical Investment Holdings was 1.93. The lowest was 0.00. And the median was 0.00.

BDMD's Price-to-Graham-Number is ranked worse than
53.35% of 388 companies
in the Medical Devices & Instruments industry
Industry Median: 1.685 vs BDMD: 1.77

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.

Baird Medical Investment Holdings Graham Number Historical Data

The historical data trend for Baird Medical Investment Holdings's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Baird Medical Investment Holdings Graham Number Chart

Baird Medical Investment Holdings Annual Data

Trend

Dec21

Dec22

Dec23

Graham Number

1.66

2.41

2.59

Baird Medical Investment Holdings Semi-Annual Data
	Dec21	Dec22	Jun23	Dec23	Jun24
Graham Number	-	-	-	2.60	2.97

Competitive Comparison of Baird Medical Investment Holdings's Graham Number

For the Medical Devices subindustry, Baird Medical Investment Holdings's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Baird Medical Investment Holdings's Price-to-Graham-Number Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Baird Medical Investment Holdings's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Baird Medical Investment Holdings's Price-to-Graham-Number falls into.

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Baird Medical Investment Holdings Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Baird Medical Investment Holdings's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI)
=	sqrt of (22.5	*	1.006	*	0.297)
=	2.59

Baird Medical Investment Holdings's Graham Number for the quarter that ended in Jun. 2024 is calculated as

	Graham Number
=	sqrt of (22.5	*	Tangible Book per Share	*	EPS without NRI (TTM))
=	sqrt of (22.5	*	1.105	*	0.354)
=	2.97

Baird Medical Investment Holdings (NAS:BDMD) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Baird Medical Investment Holdings's Price to Graham number Ratio for today is calculated as

Price to Graham number	=	Share Price (Today)	/	Graham number (Q: Jun. 2024 )
	=	5.25	/	2.97
	=	1.77

Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.

Baird Medical Investment Holdings Graham Number Related Terms

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Baird Medical Investment Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Baird Medical Investment Holdings Ltd (NAS:BDMD) » Definitions » Graham Number

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.15 Rongtong Street, Room 202, 2nd Floor, Baide Building, Building 11, Yuexiu, Guangzhou, CHN

Website

Baird Medical Investment Holdings Ltd is one of the microwave ablation medical device developers and providers in the PRC for minimally invasive treatment of tumors. Its proprietary medical devices are used for the treatment of benign and malignant tumors, including thyroid nodules, liver cancer, lung cancer and breast lumps. Microwave ablation is a minimally invasive treatment technique that denaturalizes and coagulates the protein of tumor cells with extreme heat generated by microwave energy. Microwave ablation treatments have been applied to benign and malignant tumors, and the company believes the products are safer, minimally invasive and easier to operate with faster recovery periods and lower complication rates for patients, as compared to traditional treatment methods.